This “most favored nation” clause in contracts is huge! It means that even if another store takes half of Steam’s cut (say, 15% vs 30%), the game can’t be sold for less, meaning other rival stores can never compete on price. In other words, Steam drives up prices for games economy-wide. Amazon does something similar, and this was part of the basis the FTC’s antitrust lawsuit against them.
Say I sold a game for $10 on Steam and GameStoria. With the 30% you suggest I would take home $7 from Steam and $8.50 from GameStoria. I make more with a competitor who is willing to take less and of their instead wanted to charge more, Steam would be more profitable… The consumer doesn’t see anything but a $10 game.
This “most favored nation” clause in contracts is huge! It means that even if another store takes half of Steam’s cut (say, 15% vs 30%), the game can’t be sold for less, meaning other rival stores can never compete on price. In other words, Steam drives up prices for games economy-wide. Amazon does something similar, and this was part of the basis the FTC’s antitrust lawsuit against them.
Say I sold a game for $10 on Steam and GameStoria. With the 30% you suggest I would take home $7 from Steam and $8.50 from GameStoria. I make more with a competitor who is willing to take less and of their instead wanted to charge more, Steam would be more profitable… The consumer doesn’t see anything but a $10 game.
You must be joking